Increases to CEO Compensation Might Be Put On Hold For Now at PVH Corp. (NYSE:PVH)

Key Insights

• PVH to hold its Annual General Meeting on 18th of June
• CEO Stefan Larsson's total compensation includes salary of US$1.42m
• Total compensation is 42% above industry average
• Over the past three years, PVH's EPS fell by 16% and over the past three years, the total shareholder return was 6.2%

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Despite PVH Corp.'s (NYSE:PVH) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 18th of June. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for PVH

Comparing PVH Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that PVH Corp. has a market capitalization of US$3.1b, and reported total annual CEO compensation of US$16m for the year to February 2025. That's a modest increase of 4.3% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

For comparison, other companies in the American Luxury industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$11m. Accordingly, our analysis reveals that PVH Corp. pays Stefan Larsson north of the industry median. Moreover, Stefan Larsson also holds US$8.0m worth of PVH stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. PVH pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

PVH Corp.'s Growth

PVH Corp. has reduced its earnings per share by 16% a year over the last three years. Its revenue is down 3.7% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has PVH Corp. Been A Good Investment?

With a total shareholder return of 6.2% over three years, PVH Corp. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for PVH that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.